CFTC Targets Spot Crypto Trading on Registered Exchanges Amid Policy Push

The US Commodity Futures Trading Commission (CFTC) has started an initiative to allow spot crypto trading on CFTC-registered exchanges.

This move is part of its “crypto sprint” initiative, based on 18 recommendations from President Donald Trump’s Working Group on Digital Asset Markets.

CFTC Acting Chair Caroline Pham said,

“The CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto.”

She added,

“There is a clear and simple solution the CFTC can implement now.”

The plan introduces spot crypto asset contracts, designed to work like futures-style listed contracts that reflect spot crypto prices.

These contracts would trade on CFTC-registered designated contract markets (DCMs), providing a regulated federal framework for crypto trading.

Caroline D. Pham Post. Source: X

CFTC Requests Public Input on Regulations

The CFTC has invited public feedback on section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of CFTC regulations.

Section 2(c)(2)(D) requires that retail commodity transactions involving leverage, margin, or financing be conducted on CFTC-registered DCMs. This provision establishes a regulatory framework for leveraged spot crypto trading.

Part 40 of CFTC regulations governs rules for designated contract markets, covering registration, compliance, and enforcement.

The CFTC is also collecting input on how these rules interact with securities laws and whether SEC frameworks could apply to trading non-security crypto assets that qualify as investment contracts. The public comment period closes on Aug. 18.

18 Recommendations Guide CFTC’s Crypto Policy

The Working Group’s policy report issued 18 recommendations, including directives to clarify how cryptocurrencies qualify as commodities and how registration requirements apply to decentralized finance (DeFi) participants.

The report also proposed giving CFTC-regulated entities clear guidance on crypto asset usage.

Additionally, it suggested reviewing regulations to address blockchain-based derivatives.

Out of the 18 recommendations, 16 require coordination with agencies like the Securities and Exchange Commission (SEC) and the US Treasury, focusing on crypto and related financial market oversight.

CFTC Operates With Limited Commissioners

The CFTC is operating with two commissioners: Caroline Pham and Kristin N. Johnson, who is expected to leave later this year.

Former CFTC Chair Rostin Behnam resigned on Jan. 20, 2025, when the Trump administration took office. Commissioners Summer Mersinger and Christy Goldsmith Romero resigned in May 2025.

Brian Quintenz, nominated by Trump to become permanent CFTC chair, has not been confirmed. The White House postponed the Senate vote on his nomination last week.